Community Pharmacy Scotland announces first part of funding deal for 2025/2026

Under the funding deal accepted by Community Pharmacy Scotland, in 2025/2026, the guaranteed minimum for reimbursement will increase to £120m.
The stocked shelves of a pharmacy

Community Pharmacy Scotland (CPS) has accepted the Scottish government’s offer for the first part of its financial negotiations for community pharmacy in 2025/2026.

In a statement, published on 1 May 2025, CPS said that under the offer, which focuses on reimbursement arrangements, the guaranteed minimum for reimbursement will rise to £120m — an increase from £110m in 2024/2025.

In 2024/2025, the guaranteed minimum for reimbursement also rose by £10m — from £100m to £110m.

In addition, the settlement brings the value mapped from the Scottish Drug Tariff to £100m, up from the current figure of £80m. This increased will be delivered as “guaranteed service income”, CPS added.   

However, CPS said that negotiations on the global sum remuneration are continuing. 

The negotiator said it had agreed with the Scottish government to start the negotiations with an “initial focus on reimbursement arrangements”, which “was to prevent a delay on this part of the deal whilst further discussions continue”.

In 2024/2025, the global sum — the funding that allows for core services to be provided — rose by 6%, which is a £13.2m uplift that increased the funding amount to £232.7m.

Commenting on the latest funding, Matt Barclay, chief executive of CPS, said: “We agreed with [the] Scottish government to work on what we could with the financial package when we could.

“This is effectively the first part of the deal, supporting network cashflow in the event of a medicines market downturn linked to the Drug Tariff through the guaranteed minimum and crucially mapping further guaranteed money to support strategic service lines for patients.

“We are continuing to work hard to get more resource into the contract in line with the CPS board objectives for 2025/2026.”

Olivier Picard, chair of the National Pharmacy Association, said: “This is good news for pharmacies across Scotland and will help maintain a strong network amid rising costs. National insurance and national minimum wage increases have added to the pressures facing pharmacies, alongside growing medicine costs and inflation that has affected every business in Scotland.

“It is reassuring that CPS will be closely monitoring pharmacies’ cashflow to ensure our sector remains sustainable. The pharmacy network is vital for millions of people who rely on our members not only for medicines but also health advice and treatment on their doorsteps. So it’s important to see commitment from the Scottish government to maintaining this crucial service and seeing it flourish in the years ahead.”

CPS said in its announcement that “further details will follow on this year’s financial settlement in due course”.

Last updated
Citation
The Pharmaceutical Journal, PJ, May 2025, Vol 314, No 7997;314(7997)::DOI:10.1211/PJ.2025.1.355569

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